A decrease in tax to GDP ratio of a country indicates which of the following?1. Slowing economic growth rate2. Less equitable distribution of national incomeSelect the correct answer using the code given below.(a) I only(b) 2 only(c) Both 1 and 2(d) Neither I nor 2

At 9/25/2015 11:08:52 AM, Gravityblast wrote:A decrease in tax to GDP ratio of a country indicates which of the following?1. Slowing economic growth rate2. Less equitable distribution of national incomeSelect the correct answer using the code given below.(a) I only(b) 2 only(c) Both 1 and 2(d) Neither I nor 2

Decrease in tax-to-GDP ratio may occur in 3 cases;A) if GDP increased whereas tax %age remained the same.B) Tax %age increased whereas GDP remained the same (i.e 0% growth).C) Tax growth is less than GDP growth.

So I think answer is d.

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